By Seo Jee-yeon
Staff Reporter
Shares of brokerage firms Wednesday shone the most on rumors that banks, including Kookmin Bank and Industrial Bank of Korea (IBK), have joined in a race to take over small stock brokers.
Despite the stock market fall across the board, shares of securities firms, whether big or small, soared.
In particular, shares of small- and midsize brokerage firms skyrocketed on hopes that banks or larger securities firms would target them.
Hanyang Securities rose 9.8 percent to 14,000 won; Kyobo Securities advanced 9.79 percent to 13,450 won; and Bridge Securities rose 7.10 percent to 2,940 won.
Large-scaled brokerages also rose more than 3 percent on average.
Samsung Securites rose 3.48 percent to 56,400 won; Woori Investment & Securities rose 3.18 percnet to 22,700 won; and Daewoo Securities rose 4.56 percent to 20,600 won.
``The rumor that Kookmin Bank, the nation’s top lender, took part in a bid for KGI Securities, boosted investor sentiment for securities firms,’’ said Koo Chul-ho, an analyst of Hyundai Securities.
The nation’s largest lender with ample profit reserves is one of the strongest candidates to take over a brokerage house.
Besides Kookmin, IBK, Pusan Bank and Solomon Mutual Savings Bank are also interested in buying securities firms, analysts said.
Analysts said M&A activities in the securities industry will flourish if the capital market integration bill gains parliamentary approval later this year.
``There are issues unsolved that could delay the approval of the bill, but it is highly possible for the National Assembly to eventually give the nod to the bill, aimed to advance the capital market,’’ said Seo Young-soo, an analyst of Kiwoom.com Securities.
The positive outlook for the stock market also added fuel to the rally of brokerage stocks. The trading volume has rapidly increased this month as not only foreign investors but also retail investors are expanding investment in stocks.
As of Tuesday when the stock market hit a fresh record high of 1,556.71, the trading volume jumped to 7.5 trillion won. A bigger trading volume means bigger brokerage fees for securities firms.
The benchmark KOSPI dropped 11.16 points, or 0.72 percent, to close at 1,545.55.